FederalDaily.com > MSPB Ruling Impacts Retirement Benefits

FederalDaily - April 25, 2006

MSPB Ruling Impacts Retirement Benefits

A ruling by the Merit Systems Protection Board (MSPB) will ensure that federal employees who work part-time hours because of on-the-job injuries will still receive their full annuities upon retirement, according the American Postal Workers Union (APWU). Under Office of Personnel Management (OPM) guidelines established in 2002, such retirees were treated as part-time workers and provided annuities that reflected their reduced work schedules. But the recent MSPB ruling (Hatch v. OPM, 100 MSPR 204) changes that. The ruling reasoned that an injured employee who cannot be blamed for being unable to work should not be penalized in retirement, according to APWU. APWU President William Burrus asked OPM Director Linda Springer how the agency would apply the new MSPB ruling. Springer responded in February, stating, “OPM will apply the decision in all factually similar cases, both under (CSRS and FERS). This includes new applications for retirement benefits as well as cases that come to the attention of OPM for any reason, regardless of the commencing date of the annuity.” Retirees who fit the Hatch profile and believe their annuities were based on their part-time work hours should write to OPM at: Retirement Operations Center, POB 45, Boyers, PA, 16017.

OSHA Inspections of Federal Agencies Need Improvement

The Occupational Safety and Health Administration (OSHA) does not have an effective strategy for overseeing federal agencies, the Government Accountability Office (GAO) found in a new report. According to GAO, though inspections are OSHA’s primary oversight tool, OSHA conducts very few inspections of federal worksites. In addition, the report found that OSHA does not have a strategy to target sites with high rates of injuries or illnesses. Further, GAO noted that as of January 2006 OSHA has not submitted a review of federal agency safety plans since 2000—statute requires that such a review be submitted annually. GAO recommended that the secretary of the Department of Labor ensure that OSHA submits annual review documentation as required, conduct more investigations and track noted violations until they are brought to resolution. To read the report, go to www.gao.gov/new.items/d06379.pdf.

Fed Donations Set CFC Record

Federal employees, postal workers and military personnel set a new record in 2005 by pledging $268.5 million to the Combined Federal Campaign (CFC), the Office of Personnel Management (OPM) announced last week. According to OPM, the total represents an $11 million increase over 2004, and means a new CFC record has been set each of the last three years. OPM Director Linda Springer stated, “In a year dominated by tragic, natural disasters at home, and challenges to establishing peace and democracy abroad, I am pleased by the response of the federal work force and the military.”

Sham Marriages for Extra Housing Allowance

Eight Navy sailors have been arrested for entering into fake marriages to obtain additional basic housing allowances (BAH), the Navy said last week. According to the Naval Criminal Investigative Service (NCIS) and Immigration and Customs Enforcement (ICE), in the scam eight sailors were placed into marriages with foreign women. Steve Cole, spokesperson for the U.S. attorney general in Jacksonville, Fla., confirmed that the Navy seaman who arranged the marriages received $6,000 from each woman. In each case, the Navy said, the woman did not live with her supposed military husband. While the sailors received elevated, tax-free BAH payments, the Navy noted that the women became eligible to apply for U.S. citizenship and receive status as military dependents. In several cases, NCIS and ICE discovered that the sailors involved claimed that the “wife” lived in a high cost area, to further increase the BAH payments. Capt. Jennifer Herold, a deputy assistant judge advocate general for the Navy, warned that penalties for such a crime can include dishonorable discharge and up to 10 years of confinement.